An Issue of Common Stock's Most Recent Dividend Is $1

question 40

Multiple Choice

An issue of common stock's most recent dividend is $1.75. Its growth rate is 5.7%. What is its price if the market's rate of return is 7.7%?

• A) $24.63
• B) $87.50
• C) $92.50
• D) None of these

---

Definitions:

Behavior Modification

The use of learning theory techniques, such as reinforcement and punishment, to alter human behavior.

Undesirable Behavior

Actions or conduct that are not wanted or approved of, often because they are harmful, inappropriate, or disruptive.

Desirable Behaviors

Refers to actions or reactions that are considered appealing, appropriate, or positive by a social group or cultural standard.

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety and fear responses through gradual exposure to the feared object or situation.